Two-sided Platform's Subsidy Strategies For Coordinating Supply And Demand In Sharing Economy

With the continuous advancement of internet technology,internet of things technology and intelligent equipment,two-sided platforms in sharing economy greatly reduce the search costs and transaction costs that exist in traditional transaction process.In recent years,the scale of sharing economy industry has grown explosively.The government has successively introduced a series of policies to promote the healthy,orderly and rapid development of sharing economy in China.Two-sided platforms in sharing economy frequently use subsidies to compete for larger market share and more profits in increasingly fierce competition,or coordinate supply and demand.Therefore,it is valuable to study the issue of two-sided platform's subsidy strategies in sharing economy.The main work of this paper includes:Firstly,the paper constructs two-sided market models to study how the monopoly platform should strategically choose the subsidy object and the subsidy level in sharing economy,without considering pricing decision.By considering providers heterogeneous in their opportunity cost or time cost and customers heterogeneous in their valuation of the performance of the platform,this paper constructs two multi-stage game models for maximizing platform's profits and social welfare,respectively,and obtains the optimal equilibrium solution of these game models.We study the relationship between each decision variable and optimal subsidy level to obtain the optimal subsidy strategies under different platform targets.Secondly,combined with the pricing strategy of the monopoly platform,the paper constructs two multi-stage game models for maximizing platform's profits to study how the monopoly platform should strategically choose the subsidy object and the subsidy level in sharing economy.Then,we study the relationship between each decision variable and optimal subsidy level to obtain the optimal subsidy strategies.Thirdly,the paper classifies the types of two-sided markets based on characteristics of the behavior of customers and supplyers,and then developes a series of competition models based on classic Hotelling model.The types of two-sided markets we study includes single-homing market,partial multi-homing market and multi-homing market.By study the relationship between each decision variable and optimal subsidy levels,we obtain the optimal subsidy strategies.